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Zacks Value Trader Highlights: Lumber Liquidators, Delta Airlines, Berry Petroleum, G-III Apparel And KB Home

For Immediate Release

Chicago, IL – March 6, 2020 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:

5 Dirt-Cheap Classic Value Stocks

Welcome to Episode #180 of the Value Investor Podcast

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

The coronavirus stock market correction continued into March with big, volatile swings and a 50-basis point Federal Reserve rate cut.

Value stocks have been hit hard in the sell-off as they were already out of favor by investors. The “hot” stocks still remain the “hot” stocks. But those that were “cold” got even “colder.”

Screening for Classic Value Stocks

But with the correction, comes opportunity.

Value investors are resilient. If you liked the cheap stocks before the sell-off, you like them even more now.

Classic value stocks usually entail those that have all the class value fundamentals including low P/E, P/S, P/B and PEG ratios along with a low P/cash flow as well.

Combining that with the power of the Zacks Ranks of #1 (Strong Buy) and #2 (Buy), to hopefully get rising earnings estimates, should produce a small but dirt-cheap list of stocks.

Before the correction, this screen would return just 5 or 6 stocks.

But this time, it produced 26 stocks.

5 Dirt-Cheap Classic Value Stocks

1. Lumber Liquidators ( (NYSE:LL) ), a specialty retailer of hardwood flooring, has a P/E ratio of just 11.4 even though the shares are actually up 22% in the last month, instead of being lower like most stocks. It has a PEG ratio of just 0.4. Is Lumber Liquidators a hidden gem?

2. Delta Airlines ( (NYSE:DAL) ) has had two insiders buy during the market correction, a director and 10% shareholder Berkshire Hathaway (NYSE:BRKa). It’s dirt cheap, with a forward P/E of 6.3. It also pays a dividend yielding 3.4%. But when will travel recover?

3. Berry Petroleum ( (NASDAQ:BRY) ) is an independent upstream energy company with oil reserves in the San Joaquin basin of California. It’s the cheapest stock of these 5, with a forward P/E of just 3.9. It’s shareholder friendly and is now yielding 7.6%.

4. G-III Apparel Group ( (NASDAQ:GIII) ) is a specialty retailer with iconic global brands of DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld. Shares have fallen about 25% in the past month on the fears of a consumer slowdown in China. It trades with a forward P/E of just 6.8 and a PEG of 0.6.

5. KB Home ( (NYSE:KBH) ) is a California-based national home builder. With mortgage rates plunging to record lows thanks to the Fed’s rate cut, the shares have barely pulled back in the recent correction. Yet, they’re still cheap with a forward P/E of just 9.4 and a P/S ratio of 0.7.

What else should you know about classic value stocks during this volatile time?

Tune into this week’s podcast to find out.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Delta Air Lines, Inc. (DAL): Free Stock Analysis Report

Berry Petroleum Corporation (BRY): Free Stock Analysis Report

KB Home (KBH): Free Stock Analysis Report

Lumber Liquidators Holdings, Inc (LL): Free Stock Analysis Report

G-III Apparel Group, LTD. (GIII): Free Stock Analysis Report

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